Concept explainers
Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. The following six-column table contains the company's unadjusted
MinrrfTTTrTB | Adjusted | ||
December 31. 2019 | Trial Balance | Adjustments | Trial Balance |
Cash.......................... | ......... i 17.000 | ||
......... 4.000 | |||
Allowance for doubtful accounts .. | ........ S 82B | ||
Merchandise inventory........... | ......... 11,700 | ||
Trucks......................... | ..... 32J0OO | ||
Accum. depreciation—Trucks...... | ......... 0 | ||
Equipment..................... | ......... 45J0OO | ||
Accum. depreciation—Equipment . | ........ 12.200 | ||
Accounts payable............... | ........ 5.000 | ||
Estimated warranty liability........ | ........ 1.400 | ||
Unearned services revenue....... | ......... 0 | ||
Interest payable................. | ......... 0 | ||
Long-term notes payable......... | ........ 15,000 | ||
D. Buggs,Capital................ | ......... 59,700 | ||
D. Buggs, Withdrawals........... | ......... 10,000 | ||
Extermination services revenue____ | ........ 60.000 | ||
Interest revenue................ | ........ 872 | ||
Sales (of merchandise)........... | ......... 71.026 | ||
Cost of goods sold............... | ......... 46.300 | ||
Depreciation expense—Trucks | ......... 0 | ||
Depreciation expense—Equipment | ......... 0 | ||
Wages expense................. | ......... 35,000 | ||
Interest expense................ | ......... 0 | ||
Rent expense................... | ......... 9,000 | ||
........ 0 | |||
Miscellaneous expense........... | ........ 1,226 | ||
Repairs expense................ | ......... a.ooo | ||
Utilities expense................ | ......... 6.B00 | ||
Warranly expense............... | ......... 0 | ||
Totals......................... | ......... S226.026 $226,026 | ||
The following information in a through h ap | iplies to the company at the end of the current | year. | - |
3. The bank reconciliation as of December 31. 2019. includes the following facts. | |||
Cash balance per bank.............. | $15,100 Deposit in transit............... | ........... $2,450 |
Cash balance per books.............. 17.000 Interest earned (on bank account}.................. 52
Outstanding checks................. 1.800 Bankservicecharges(mrscellaneousexpense)....... 15
Reported on the bank statement is a canceled check that the company failed to record. (Information from the bank reconciliation allows you to determine the amount of this check, which is a payment on an account payable.)
b. An examination of customers' accounts shows that accounts totaling S679 should be written off as uncollectible. Using an aging of receivables, the company determines that the ending balance of the Allowance for Doubtful Accounts should be S700.
C. A truck is purchased and placed in service on January 1= 2019. Its cost is being
Original cost....... J32.000 Expected salvage value......... SE.000 Useful life (years)........ 4

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Chapter 11 Solutions
FUND.ACCT.PRIN.-CONNECT ACCESS
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